IPG Phonotics declared its quarterly results for the quarter ended December 2011. The company manufactures industrial laser. Results for the quarter have been impressive as the company was able to pull off a 15 percent growth over the previous year. The company has provided a muted outlook for the future quarters as it expects the sales to be down. Lasers are widely sued by auto manufacturers in their units. The company hopes to enter the emerging markets over the future. The company forecast that its first quarter revenue will be between $115 million and $125 million. It predicted that net income will be between 54 cents per share and 64 cents per share. Revenue for the entire year was up by over 59 percent.
The company said that during the quarter ended Dec. 31 it had net income of $31.1 million, or 64 cents per share, up from $27.1 million, or 56 cents per share, during the same period the year before. Revenue during the quarter was $123.5 million, up 22 percent from $101 million in the prior year period. The profits were in sync with the expectations provided by the analysts. Increase in raw material costs could prove to be crucial for the company if it has to manage the growth levels.
Commenting on the results CEO Valentin Gapontsev said sales of high-power lasers grew 62 percent during the quarter when compared to the year before. The lasers are used by factories for cutting and welding. He further stated that surge in demand was driven primarily by auto parts manufacturers in Europe and the United States.
We maintain an accumulate on the stock as the company will do well in the future. Increase in sales will help the company post good results over the quarter.